U.S. antitrust law is complicated, but current efforts to block a merger between grocery retailers Albertsons and Kroger may not fit the bill. Current triggers under the law include:
Market share of 70 percent or more, or less than 50 percent if barriers limit competition. Barriers to entry prevent competition. When a firm can raise prices above competitive levels without losing market share. The use of predatory practices. A Herfindahl-Hirschman Index score of 2,500 or higher, or possibly 1,500 to 2,500.
The proposed Albertson/Kroger merger would result in a firm still smaller than Walmart. Under the Rule of Three theory, firms consolidate until three firms dominate a market. GM, Ford and Chrysler once comprised the B...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...